DTI pushes for revival of investment ombudsman

MANILA, Philippines - The Department of Trade and Industry (DTI) is proposing the revival of the investment ombudsman to protect the interest of investors especially from harassment cases and local laws that are against national laws.

Trade and Industry Secretary Gregory L. Domingo said that they are looking at appointing an investment ombudsman. Domingo clarified that this idea is only a proposal which may or may not be implemented.

The DTI secretary said that in line with the goal of the government to attract more investors, there is a need to protect businessmen especially from harassment cases. This is especially important to foreign investors who may not be aware of how things work in some offices in the country.

The investment ombudsman, coupled with the bullish economic outlook for this year, will be good for the country and will attract more investors, he said.

 “Both domestic and foreign firms are lining up to invest.” Domingo said with majority of the investors Japanese firms who would like to put up manufacturing plants here. Other investments being eyed are in shipbuilding and mining.

In fact, Domingo is very optimistic about the growth prospects of the country saying that the economy has a ìdecent chanceî of exceeding the 2010 gross domestic product (GDP) of 7.6 percent.

 “For the GDP, I am more optimistic than the forecast. 2011 is definitely stronger and we have a very good chance of growing above 6 percent,î Domingo said. He added that there is a decent chance of surpassing the 2010 GDP. ìMy forecast is 6 percent up,î Domingo said.

The reason for this, he said, was the low export base recorded in 2011. The countryís exports dipped as demand and supply problems hit. Demand slowed down as a result of the financial crisis in the United States and Europe, while the supply of raw materials was affected as natural disasters destroyed factories in Japan and Thailand last year.

Domingo added that electronics exports could not be negative and the non electronics exports would be strong. At the same time, he said, the service sector would continue to be a growth driver. The secretary noted that the business process outsourcing industry (BPO) expanded last year and is expected to grow further this year.

Tourism could also be a growth driver this year, Domingo said. He said government spending could be back on track this 2012. Likewise, he said the Public Private Partnership (PPP) could pick up speed. The PPP is expected to have a big multiplier effect on the economy because not only will it infuse money, it could also provide jobs.

“There are many positive things going for our economy,î Domingo said.

Domingo said the threats in the Philippine economy are mostly external like the continued weakness in the US and European markets. He also said that the possible lower growth in China is a cause for concern.

On the domestic front, he said there is strong momentum and the impeachment of Chief Justice Renato Corona could have minimal impact in the economy.